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BI gets new gadgets for faster OFWs e-card validation at NAIA

THE BUREAU of Immigration (BI) has received new gadgets from the Overseas Workers Welfare Administration (OWWA) that would expedite the processing of departing overseas Filipino workers (OFWs) at the Ninoy Aquino International Airport (NAIA). In a press statement, BI Port Operations Division Chief Grifton SP. Medina said the six tablets and six bar code readers from OWWA will be used by BI personnel at NAIA to check the authenticity and validity of OWWA e-cards presented by departing OFWs. The OWWA e-card serves as an exit clearance for OFWs, and also allows faster availment of OWWA services. Mr. Medina said the gadgets will be used to conduct pre-screening of departing OFWs. “This means that we will be able to detect immediately if an e-card is not valid, even before they reach the immigration counter,” he said. Mr. Medina noted that there were instances that OFWs were victimized by syndicates and were caught with fake or invalid overseas employment certificates. — Vann Marlo M. Villegas

Equipment deployed for Manila Bay desilting

A FLEET of equipment has been deployed by the Department of Public Works and Highways (DPWH) for the desilting of Manila Bay. “This event marks the full-blast dredging within this critical section of Manila Bay. Our Bureau of Equipment, Regional and District Engineering Offices in Metro Manila have deployed a total of 28 equipment, and 50 personnel to operate 16 hours a day, 6 days a week,” said Secretary Mark A. Villar during the launch of the DPWH Sagip Manila Bay project on March 5. An estimated 225,000 cubic meters of silt will be removed across the approximately 1.5-kilometer stretch of Manila Bay from the Manila Yacht Club breakwater to the US Embassy. Mr. Villar also said that aside from the dredging activities at the bay, the DPWH is also conducting cleanup and declogging of the tributaries and drainage canals in Manila City. This is being undertaken in coordination with other agencies such as the Department of Environment and Natural Resources (DENR), Metropolitan Manila Development Authority (MMDA), and the Philippine Coast Guard. “We are working harmoniously with the DENR, the MMDA, other mandamus agencies and local government units for a holistic approach in cleaning Manila Bay. These tributaries or esteros and drainage pipes need to be cleaned and unclogged, as trash from these areas will eventually make their way to Manila Bay,” he said.

Kalibo slaughterhouse project opened for Swiss challenge

THE MUNICIPAL government of Kalibo is ready to receive challenge bids for the rehabilitation of the Kalibo Meat Plant’s principal slaughterhouse, which will also involve the operation and maintenance of the facility.
In a statement on Tuesday, the Public Private Partnership (PPP) Center said the local government is inviting bidders to submit proposals to proceed to a Competitive Challenge for the joint venture (JV).
The project was submitted as an unsolicited proposal of the Philippine Slaughterhouse Management Operation Inc, which received the original proponent status (OPS) on May 15, 2018 from the municipal government.
Under the procurement process of the PPP Center for a joint venture project, a competitive challenge has to be conducted by allowing other bidders to participate in the same proposal, with the following factors as bid parameters: highest concession fee, lowest government share, lowest cost to consumer, highest/lowest lease fee, etc.
The first stage for a JV is the evaluation of its proposal, then a negotiation on terms and conditions, then the third would be the competitive challenge.
According to the PPP Center, the negotiations between the Kalibo government and the original proponent were concluded last Feb. 19.
The original proposal has an estimated cost of P30 million for a concession period of 28 years.
Interested bidders should submit an Expression of Interest to participate in the challenge, as mandated by the Kalibo government’s PPP Code.
They must also purchase the tender documents and submit the requirements on or before Apr. 9. — Reicelene Joy N. Ignacio

FPOP-Iloilo’s community center targets people at risk of HIV

THE FAMILY Planning Organization of the Philippines (FPOP)-Iloilo Chapter has set up a community center aimed at assisting those at risk of the Human Immunodeficiency Virus (HIV) and Acquired Immunodeficiency Syndrome (AIDS) in Iloilo City. Roberto P. Figuracion Jr., an officer of the Raising Awareness for Junior Advocates on HIV (RAJAH) Community Center, said they want to provide a “safe space” for HIV testing and services in the city, along with counselling and other support services. “We want to target the key population who are males and transgender women having sex with males, pregnant women, and their partners and even the general public to have access to this one-stop-shop facility. We want to provide them with a place where they can go to get tested,” he said. Based on data from the Department of Health-Western Visayas Region, 765 HIV/AIDS cases have been reported in Iloilo City. In the entire region, 3, 012 cases have been recorded since 1984. Mr. Figuracion said they are now employing a more holistic approach in terms of HIV testing in Iloilo to end the stigma. “There are still many unreachable clients because they were too afraid to see a treatment facility. Here, we are providing key services for persons living with HIV that are comfortable and less stigmatizing,” he said. “As an alternative service point, the center will serve as an option to what already is in place by the local government units,” he added. — Emme Rose S. Santiagudo

4 NPA members surrender in Iligan City

FOUR MEMBERS of the New People’s Army (NPA), the armed wing of the communist movement, surrendered with their weapons to the Joint Task Force ZamPeLan in Iligan City last Feb. 28, the Western Mindanao Command (WestMinCom) reported yesterday. “The returnees decided to surrender because of the hardships they experienced on the mountains. They are also tired of hiding from the government forces who are conducting military operations in the area,” said Lieutenant Colonel Jasper Edward Obar, head of the 51st Infantry Battalion. “We warmly welcome the four returnees who realized that their lives with the communist NPA terrorist will lead nowhere. We will ensure that, through the E-CLIP (Enhanced Comprehensive Local Integration Program), they will be provided with the necessary assistance,” said Colonel Ezra James Enriquez, the 2nd Mechanized Brigade commander.

Nation at a Glance — (03/06/19)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.
Nation at a Glance — (03/06/19)

Building inclusive innovations in disaster risk reduction

Where calamity hits, tragedy always follows. According to the Philippine Statistics Authority, disasters wreaked an estimated P374.2 billion in damage from 1995 to 2015. Economic losses, including “damage to buildings and transportation networks, loss of revenue for businesses, and loss of crops,” was estimated at P139.7 billion.
What these numbers fail to quantify, however, is the devastation wrought among society’s most disadvantaged sectors, particularly the poor. Most risk management programs attempt to mitigate damage in broad strokes. And so, as with most social systems, the poor fall through the cracks.
To help shine a spotlight on community-centric disaster risk reduction (DRR) innovations, NGO consortium Tuklas Innovation Labs and international humanitarian agency CARE Philippines held Pasundayag: the Central and Southern Luzon Innovation Fair, last Feb 12 at the SM Sky Dome in Quezon City.

Inclusive investment is key

Pasundayag is the second of four innovation fairs taking place across the country, organized by Tuklas and CARE Philippines. During these events, winning proposals selected from among 266 nationwide pitch their projects to LGUs, NGOs, the academe, and the private sector for possible partnerships and investments.
According to Enan Melencio, consortium manager of Tuklas Innovation Labs, the 2017 World Risk Report ranked the Philippines as the third most disaster-prone country in the world. The computation for this ranking factored not only the frequency of disasters and proximity to disaster-prone areas (like the Pacific Ring of Fire) but also manmade variables such as disaster preparedness and response.
“We encouraged our innovators to treat the people in the communities as their co-implementers, co-designers, and co-testers,” said Melencio. “We wanted to prove here in the Philippines that innovation isn’t just for those who are well-off and highly-educated. Rather, the people in communities have the ability to innovate.”

By communities, for communities

Among the groups Melencio is referring to are the overlooked communities of Central and South Luzon. When the Tagbanuas of Palawan were struck by Typhoon Yolanda in 2013, many of them were left struggling to provide food for their families.
To ensure that the Tagbanuas would not have to experience hunger again, the Samdhama Institute is pushing silipeten, a traditional food of the Tagbanuas which uses ingredients that can be found in their environment. Through workshops teaching and documenting traditional recipes, the organization is helping this community both make the most of their resources and preserve their culture.
Noticing a lack of appropriate learning materials for persons with disabilities (PWDs), the Foundation for TheseAbled Persons, Inc. (FTI) aims to include PWDs in the disaster risk reduction conversation. As part of their program, FTI wrote a Disability-Inclusive Risk Reduction Field Guide which tackles how PWDs should respond during calamities. They also prepared emergency go-bags with checklists that are unique to different mental and physical disabilities, which covers items such as assistive devices and PWD IDs.
Programs like FTI give PWDs the opportunity to assert their rights and needs as citizens. “People with disabilities should always be safe from disasters. So PWDs should be involved in any preparations for disasters,” said Bing Legaspi, a representative from FTI.

Different ways to help

While inclusive disaster risk reduction is a noble pursuit, without proper funding, that goal is dead in the water. Melencio explains that events like Pasundayag that pull together potential investors from both the private and public sectors are vital in ensuring these projects gain and maintain traction.
Beyond financial help, NGOs and academic institutions can partner with innovators to further develop their products and services. Organizations like LGUs can also request for workshops and trainings, providing platforms for DRR firms to promote their projects.
“Every one of us will need to do our part to ensure that we are prepared,” said Aarjan Dixit, Senior Consultant on Climate Change and Resilience of CARE Philippines. “And we need to make sure that we find innovative ways to reduce and prepare for these risks.”

Factory output continues to decline in January

FACTORY output posted its second consecutive month of decline in January, the Philippine Statistics Authority (PSA) reported this morning.
Preliminary results of the PSA’s latest Monthly Integrated Survey of Selected Industries, showed its volume of production index contracting by 4.1% year on year in January versus the December’s revised 11.9% decline and the 10.8% growth logged in January 2018.
The PSA reported twelve out of the 20 major industry groups that registered annual declines: “Major industries that significantly influenced the decrease were furniture and fixtures and basic metals, with two-digit decreases of 31.1% and 12.0%, respectively,” said the PSA.
In comparison, the Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI) was 52.3 that month, slightly lower than December 2018’s 53.2, but higher than January 2018’s 51.7.
A PMI reading above 50 signals improvement in business conditions from the preceding month, while a score below that point indicates deterioration.
Average capacity utilization — the extent by which industry resources are used in the production of goods — was estimated at 84.3%. Eleven of the 20 sectors registered capacity utilization rates of at least 80%. — Mark T. Amoguis

Inflation continues to decelerate in February

The increase in the prices of widely used goods continued to ease in February, the government reported this morning.
Preliminary data from the Philippine Statistics Authority showed February inflation at 3.8%, slower than the 4.4% logged in January and matching the inflation rate in February 2018 .
The preliminary result was lower than the 4.1% median forecast in a BusinessWorld poll of 13 economists conducted last week. The February print was also within the 3.7%-4.5% estimate by the Bangko Sentral ng Pilipinas’ (BSP) Department of Economic Research for the month.
The February reading marked the fourth straight month of deceleration from the 6.7% peak recorded in September and October last year.
“Slowdown in inflation remained to be primarily attributed to the slower annual increase in the index of the heavily-weighted food and non-alcoholic beverages at 4.7%,” the PSA said.
“Annual gains were also slower in the indices of other commodity groups, except for communication and education. The education index continued to post a negative annual rate of 3.8%. Moreover, inflation for communication remained at 0.4%.”
The preliminary result brought year-to-date average to 4.1% – slightly above the 2%-4% target band set by the BSP for the year.
Core inflation – which excludes volatile food and energy items in the consumer basket – was 3.9% last month, slower than January’s 4.4% albeit faster than the 3% in the same period last year.
The food alone index, meanwhile, eased to 4.2% versus the previous month’s 5.1% and 4.8% a year ago. — Christine Joyce S. Castañeda

Duterte picks Diokno as new BSP chief

PRESIDENT Rodrigo R. Duterte has chosen Budget Secretary Benjamin E. Diokno to replace the late Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla, Jr., who died of cancer last Feb. 23, top administration officials announced on Monday night.
“The Palace wishes to inform [the public on] the appointment of Department of Budget and Management Secretary Benjamin Diokno as the new Governor of Bangko Sentral ng Pilipinas, succeeding the late Governor Nestor Espenilla, Jr.,” Salvador S. Panelo, chief presidential legal counsel and presidential spokesperson, said in a statement sent to reporters via Viber, adding that Mr. Duterte “made this announcement at the start of the 35th Cabinet Meeting on Monday, March 4.”
Executive Secretary Salvador C. Medialdea earlier in the evening confirmed the information in a mobile phone message, while Finance Sec. Carlos G. Dominguez III told reporters via Viber message: “Dr. Benjamin E. Diokno brings together that elusive combination of seasoned technocrat and professional manager.”
“He knows the inner workings of government and industry, and has repeatedly demonstrated the ability to run a large, complex organization with intellectual leadership and a steady hand. All of these will contribute to his successful stewardship of the Bangko Sentral ng Pilipinas as its next governor and chairman of the Monetary Board,” Mr. Dominguez said.
“His competence is unquestionable, owing to his deep expertise in macroeconomics and extensive senior management experience in government and the private sector.”
Mr. Dominguez said Janet B. Abuel, Budget undersecretary in charge of the Local Government and Regional Operations Group, will serve as the Budget department’s officer-in-charge.
Mr. Diokno — who also served as Budget chief under former president-now-Manila Mayor Joseph E. Estrada from 1998 to 2001 and was undersecretary at the same department in 1986-1991 under the late former president Corazon C. Aquino — will serve the remainder of Mr. Espenilla’s six-year term that was to end in July 2023.
Mr. Diokno had been instrumental in making the government spend closer to program last year — through regular meetings with chiefs of line departments that have had a poor disbursement track record — in a bid to spur overall economic growth to 7-8% annually until 2022, when Mr. Duterte ends his six-year term, from 6.3% in 2010-2016 under former president Benigno S.C. Aquino III.
In the process of reforming the national budget to take into consideration the historical spending capacities of state departments, agencies and offices, however — resulting in a slightly smaller proposed P3.757-trillion general appropriations act for 2019 — he ran into opposition at the House of Representatives, whose leaders bared alleged irregularities in the Executive branch’s submitted spending plan.
Consequently, the 2019 national budget failed to be enacted by end-2018, resulting in a reenacted spending plan that left new projects unfunded.
This year’s budget still awaits Mr. Duterte’s signature.
That delay, plus a 45-day ban on public works ahead of the May 13 midterm elections and a brewing El Niño episode that will hit farm production has cast a pall over the country’s economic growth prospects this year.
Mr. Diokno is professor emeritus at the University of the Philippines-Diliman and holds a Bachelor’s Degree in Public Administration (1968) and Masters’ Degrees in Public Administration (1970) and Economics (1974) from the same university. He also earned a Master of Arts in Political Economy (1976) from the Johns Hopkins University, USA and a Ph.D. in Economics (1981) from the Maxwell School of Citizenship and Public Affairs, Syracuse University, USA.
“In his new tour of duty in the BSP, we expect incoming Governor Diokno to spearhead reform initiatives that will align the financial institution’s operations with international best practices and improve its corporate viability, among others, in line with Republic Act No. 11211, which was signed into law by President Duterte just last February 14,” Mr. Panelo said in his statement, referring to The New Central Bank Act that fortifies the central monetary authority.
“With him at the helm of the Bangko Sentral ng Pilipinas, our banking institutions are in good and competent hands.” — with inputs from ALB, KANV and MLTL

GDP growth to pick up as inflation slows

THE PHILIPPINE ECONOMY can be expected to grow faster this quarter and for the full year as slowing inflation spurs consumer spending, while state infrastructure spending and private construction should be able to sustain “their elevated trajectory,” according to separate analyses released on Monday.
The Union Bank of the Philippines, Inc. said economic growth may clock in at 6.4% this quarter, based on initial data from the bank’s forecasting model called Nowcasting Philippines.
The Philippine Statistics Authority is scheduled to report first-quarter GDP data on May 9.
Philippine gross domestic product (GDP) grew by just 6.2% in 2018, pulled down by a slower-than-expected pace of 6.1% in the fourth quarter as agriculture output slowed sharply, while inputs from services and the industrial sector also posted slower increases compared to 2017.
The administration of President Rodrigo R. Duterte is targeting GDP growth of 7-8% annually until 2022, when he ends his six-year term.
On the other hand, analysts from the First Metro Investment Corp. (FMIC) and the University of Asia & the Pacific (UA&P) said the Philippine economy is poised to expand faster this year, but flagged that budget delays could derail growth prospects.
“Early economic numbers showed a positive tone, especially with inflation receding fast, but downside risks lurk in the real economy in the horizon,” FMIC and UA&P analysts said the latest issue of their joint publication, The Market Call.
The analysts see GDP growth at 6.8-7.2% this year and inflation settling lower at 3-3.5%, a sharp drop from 5.2% in 2018.
“Our projections that headline inflation will ineluctably fall (year-on-year) to below the Bangko Sentral ng Pilipinas (BSP) target of 2-4% would suggest a rebound in consumer spending, boosted further by election-related spending,” the report added.
“Infrastructure spending and private construction should prolong their elevated trajectory, even though the risk posed on the former by the re-enacted budget may have a temporary effect in Q1-2019.”
The P3.757-trillion national budget is yet to be signed into law by Mr. Duterte, as Congress was able to finalize it only in mid-February. The government is operating on a re-enacted budget, leaving new programs unfunded.
Despite this, FMIC and UA&P analysts see infrastructure spending maintaining a double-digit pace of increase from the previous year, citing planned exemptions to the 45-day public works ban ahead of the May 13 midterm elections.
On the monetary front, the analysts expect as much as a 200-basis-point reduction in banks’ reserve requirement ratio within this quarter to free up more cash, noting that money supply growth has softened to single digit levels.
They also expect cuts to the benchmark interest rates by the third quarter “after headline inflation goes below three percent.”
Market watchers expect inflation to have slowed further in February to 4.1%, coming from January’s 4.4%. The central bank expects inflation to return to below four percent in March, with the full-year figure seen at 3.1%.
BSP officials have said that they will remain data-driven in their policy moves, noting that the easing inflation trend gives room for them to allow 2018’s rate hikes to work their way through the financial system. Deputy Governor Diwa C. Guinigundo also said that the year-to-date inflation rate as well as price expectations need to be well within target before they can unleash fresh cuts in required bank reserves. — Melissa Luz T. Lopez

WB cites need to lift restrictive rules to fuel economic activity

LIFTING regulations that restrict competition can help spur economic growth, according to a study conducted late last year by the World Bank Group that noted that Philippine markets are more concentrated — with few players — and more restrictive than those of regional peers.
Titled “Fostering Competition in the Philippines: The Challenge of Restrictive Regulations,” the November 2018 study — presented in a press briefing in Makati City on Monday — noted that a number of markets in the country have “only one firm in operation in an environment where competition would usually be considered viable.”
It particularly cited as “highly concentrated” the fields of transport and storage, agriculture, wholesale and retail trade, and manufacturing.
“In agriculture, there are 15 national markets that have only one firm operating, 16 in manufacturing, five in wholesale/retail and 15 in transport/storage,” it read.
The study noted, among others, that “in manufacturing, where the contribution to GDP has decreased in recent decades, Philippine markets appear to be more concentrated than those of regional peers, with a higher proportion of monopoly, duopoly or oligopoly markets which are typically more prone to collusion and abuse of market power, and a recent increase in the number of monopolies and duopolies.”
It also gave competition snapshots of four key service sectors, namely: energy, professional services, transport and telecommunication, which have “a lot of impact on downstream markets and spillover effects in the economy.”
“An estimation of the bank would be that an enhanced framework in services sector will actually result not only in increased productivity but in at least 0.2 percentage point in growth for the Philippines every year,” Graciela Miralles Murciego, senior economist for World Bank’s Markets and Competition Policy division, said in the briefing.
The World Bank study identified 99 restrictions and noted that many of these are rules that discriminate and protect vested interests (45.5%), followed by rules that reinforce dominance and limit entry (33.3%) and are conducive to collusive outcomes or increase costs to compete in the market (21.2%).
It also noted that “[a]lthough the government… had adopted key reforms to rationalize state participation in the economy, state-owned enterprises (SOEs) are still present in a number of non-infrastructure sectors where private participation is typically possible and economically viable.”
“Although the presence of SOEs in infrastructure sectors is not unusual across countries — especially in sectors that require capital investments (such as electricity transmission and road infrastructure), the government of the Philippines controls at least one in 11 firms out of the 17 non-infrastructure sectors surveyed,” it added, saying the list included insurance, financial services, construction, fabricated metal products, wholesale and retail trade, human health activities, as well as restaurants and hotels.
Hence, the study said rules should enable private and state-owned businesses to “compete on equal terms.”
“While the competition law calls for equal treatment of SOEs and private firms, privileges and immunities in terms of corporate governance or access to finance may distort market competition and even risk crowding out the private sector.”
It also cited inequitable provision of subsidies that “may result in market distortions”, citing 2012 statistics showing that 56 markets across sectors like manufacturing, agriculture, wholesale/retail and transport/storage “reported at least one firm receiving a subsidy (equivalent to nine percent of all markets in those sectors).”
“… [I]n many cases, subsidies do not appear to have been granted equally to all firms within the market,” the World Bank noted.
“In 22 industries, only one firm received subsidy while more than one firm operated in the market.” — J. C. Lim